The pawnbroker grants a loan of money against the deposit of a pledge to secure the loan together with interest and the costs of business operations.

The pawnbroker brokers pawn transactions by granting an advance on pawns handed over to him/her and pledging the pawns in his/her name with a pawnbroker.

Anyone wishing to operate the business of a pawnbroker or pawnbroker requires the permission of the competent authority. The permit may be subject to conditions if this is necessary to protect the general public or the pledger.

In the case of partnerships (e.g. OHG, KG), the trader is each managing partner. In the case of legal entities (e.g. GmbH, AG), the permit is granted to the legal entity.